Correlation Between Legatus Shoppings and Xp Malls
Can any of the company-specific risk be diversified away by investing in both Legatus Shoppings and Xp Malls at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Legatus Shoppings and Xp Malls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legatus Shoppings Fundo and Xp Malls Fundo, you can compare the effects of market volatilities on Legatus Shoppings and Xp Malls and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Legatus Shoppings with a short position of Xp Malls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legatus Shoppings and Xp Malls.
Diversification Opportunities for Legatus Shoppings and Xp Malls
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Legatus and XPML11 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Legatus Shoppings Fundo and Xp Malls Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Malls Fundo and Legatus Shoppings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Legatus Shoppings Fundo are associated (or correlated) with Xp Malls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Malls Fundo has no effect on the direction of Legatus Shoppings i.e., Legatus Shoppings and Xp Malls go up and down completely randomly.
Pair Corralation between Legatus Shoppings and Xp Malls
Assuming the 90 days trading horizon Legatus Shoppings Fundo is expected to generate 1.04 times more return on investment than Xp Malls. However, Legatus Shoppings is 1.04 times more volatile than Xp Malls Fundo. It trades about -0.01 of its potential returns per unit of risk. Xp Malls Fundo is currently generating about -0.13 per unit of risk. If you would invest 11,128 in Legatus Shoppings Fundo on September 1, 2024 and sell it today you would lose (128.00) from holding Legatus Shoppings Fundo or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legatus Shoppings Fundo vs. Xp Malls Fundo
Performance |
| Timeline |
| Legatus Shoppings Fundo |
| Xp Malls Fundo |
Legatus Shoppings and Xp Malls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legatus Shoppings and Xp Malls
The main advantage of trading using opposite Legatus Shoppings and Xp Malls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legatus Shoppings position performs unexpectedly, Xp Malls can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xp Malls will offset losses from the drop in Xp Malls' long position.| Legatus Shoppings vs. Real Estate Investment | Legatus Shoppings vs. NAVI CRDITO IMOBILIRIO | Legatus Shoppings vs. LIFE CAPITAL PARTNERS | Legatus Shoppings vs. Cshg Jhsf Prime |
| Xp Malls vs. Energisa SA | Xp Malls vs. BTG Pactual Logstica | Xp Malls vs. Plano Plano Desenvolvimento | Xp Malls vs. Companhia Habitasul de |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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